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The National Association of Convenience Stores (NACS) event serves as a bellwether for consumer packaged goods (CPG) innovation. This year, PepsiCo didn\u2019t just show up\u2014they set the tone, blending flavor innovation, with bold ambitions and an unwavering commitment to people, planet, and their partners. Through my years of helping retail and CPG companies reimagine what\u2019s possible, I\u2019ve seen innovation flourish when it tackles real human needs while addressing global challenges. Seeing what PepsiCo delivered this year at NACS made the hair on my arm stand straight up, sending the signal to me that we are on the cusp of industry transformation.<\/span><\/p>\n Starting an innovation team in the CPG space for a national brand and spending plenty of time on the showroom floors in the industry makes me hard to impress. But I have to say, I paid extra close attention to PepsiCo this year as my spidey senses were picking up\u00a0 on their <\/span>mindfully innovative <\/span><\/i>strategy. I believe major industry transformation is heading our way!\u00a0<\/span><\/p>\n I had the opportunity to catch up with some of the leaders at PepsiCo who are spearheading the company strategy. Bryan Santee, <\/span>Chief Commercial Officer, PepsiCo Beverages North America and<\/span><\/i> Cara Keating, C<\/span>hief Customer Officer, PepsiCo Foods North America. <\/span><\/i>Bryan stated, \u201cNACS is a special moment for the PepsiCo team to support our convenience store partners and customers through product innovation and pairings. It\u2019s exciting for us to rally with the industry!\u201d\u00a0<\/span><\/p>\n The conversations with Bryan and Cara are so inspiring and offer a masterclass for any CPG leader eager to stay ahead of the curve. I felt the need to share my top 5 takeaways and three critical questions you should be thinking about for your brands and stores.<\/span><\/p>\n PepsiCo\u2019s showcase at NACS proved once again that flavor innovation remains at the heart of their strategy. From the launch of Quaker Protein Breakfast Bars catering to health-conscious consumers, to the bold allure of Gatorade Midnight Black which adds mystique to hydration, and the indulgent decadence of Doritos Golden Sriracha, PepsiCo demonstrated their unmatched ability to cater to diverse tastes and lifestyles.<\/span><\/p>\n \u201cWe are always looking for new ways to excite and inspire the fans of our iconic brands and attract new ones,\u201d said Bryan Santee. But it\u2019s not just about the flavors of one product. \u201cThrough our expansive food and beverage portfolio, we have every occasion covered with complimentary food and beverage pairings to create more smiles with every sip and every bite.\u201d\u00a0<\/span><\/p>\n For CPG companies, introducing fresh, compelling flavors is no longer optional\u2014it\u2019s table stakes. Consumers expect brands to surprise and delight them with each new product release. Failing to meet these expectations risks irrelevance in an industry where trends can shift overnight. And thinking about how multiple products or brands can compliment each other is a way to increase share and affinity for your brands.<\/span><\/p>\n PepsiCo recognizes that flavor alone isn\u2019t enough to sustain loyalty. As Cara Keating, Chief Customer Officer, noted, <\/span>\u201cWe\u2019re always seeking new solutions to drive growth for our customers, associates, and consumers, ensuring our innovations and capabilities benefit both people and the planet.\u201d<\/span><\/i> This commitment is embodied in <\/span>PepsiCo Positive<\/span><\/i> (pep+), a transformative strategy introduced in 2021 that spans production, marketing, and distribution to align operations with sustainability and community impact.<\/span><\/p>\n This broader approach is where PepsiCo\u2019s strategy truly shines. By integrating sustainability, community engagement, and advanced analytics into their operations, they are moving beyond flavor to build deeper, more meaningful consumer connections.<\/span><\/p>\n For CPG leaders:<\/b> Flavor innovation remains essential\u2014it\u2019s the gateway to consumer loyalty. But the future lies in pairing bold flavors with purposeful actions. Today\u2019s consumers aren\u2019t just buying snacks and beverages; they\u2019re choosing brands that reflect their values. The companies that thrive will be those that seamlessly deliver both.<\/span><\/p>\n Flavor wins mouths, but purpose wins hearts.<\/span><\/p>\n At the core of PepsiCo\u2019s NACS presence was its ambitious \u201cPepsiCo Positive\u201d (pep+) strategy, which Cara described as <\/span>\u201cembedded in everything we do, from transforming how we grow our ingredients, how we make, move, sell, and package our products, and how we inspire people through our brands.\u201d<\/span><\/i><\/p>\n \u00a0<\/p>\n A standout example of this commitment is the integration of Oscar Sort\u2014an AI recycling assistant that aids in proper disposal, improving overall recycling accuracy. Powered by advanced technology, Oscar identifies materials, detects organic remnants like food or liquids, and provides step-by-step sorting instructions. Its interactive digital display gamifies recycling, offering real-time feedback while educating users on sustainable habits.<\/span><\/p>\n \u00a0<\/p>\n PepsiCo highlighted its partnership with Intuitive AI, the developers behind Oscar, during NACS. The technology is already operational in several PepsiCo office locations and will be deployed in select customer partner locations in the coming months, demonstrating the company\u2019s leadership in sustainability. Showcasing this partnership was a strategic move, underscoring PepsiCo\u2019s role in driving meaningful environmental change within the CPG industry. As consumers increasingly demand brands make a positive impact, Oscar Sort represents a major win for the PepsiCo Positive initiative.<\/span><\/p>\n For CPG leaders:<\/b> The takeaway is clear: sustainability is more than good PR\u2014it\u2019s a growth strategy. Identifying opportunities to reduce waste or cut emissions in your supply chain not only aligns with consumer expectations but can also yield significant cost savings and long-term benefits.<\/span><\/p>\n Continuing with the PepsiCo Positive strategy at NACS, community impact through initiatives like <\/span>Cheetos Deja Tu Huella<\/span><\/i> and <\/span>Taste of Tomorrow <\/span><\/i>resonated with attendees. These programs not only address systemic inequities but also strengthen consumer loyalty by aligning with values that resonate deeply with their audiences.<\/span><\/p>\n Cara shared how <\/span>Cheetos Deja Tu Huella<\/span><\/i> continues the five-year initiative to uplift individuals in Hispanic communities by rewarding their efforts to make a difference. <\/span>\u201cThe brand partnered with J Balvin, an international superstar and entrepreneur, to drive awareness and inspiration for the program,\u201d<\/span><\/i> said Cara. The initiative awards $25,000 to individuals using their talents to create positive change in their communities, amplifying the program\u2019s mission to inspire and empower.<\/span><\/p>\n Bryan discussed the <\/span>Taste of Tomorrow<\/span><\/i> initiative, which tackles underrepresentation in STEM careers among Black professionals, who currently make up just 9% of the STEM workforce. To address this gap, PepsiCo and the PepsiCo Foundation are investing $350,000 in scholarships and resources at nine HBCUs for the 2025 school year. The program also features an R&D educational workshop series designed to provide students with greater access to STEM opportunities.<\/span><\/p>\n Taste of Tomorrow<\/span><\/i> highlights PepsiCo\u2019s innovative approach to engagement by using products like Pepsi\u00ae Zero Sugar and Doritos\u00ae to connect with students through on-campus culinary innovations. In collaboration with in-house chefs and food science experts, the initiative encourages students to explore food innovation at home. This campaign reinforces PepsiCo\u2019s commitment to fostering diverse talent pipelines, addressing systemic barriers, and creating economic opportunities for historically underserved communities.<\/span><\/p>\n For CPG leaders:<\/b> Purpose-driven initiatives that align with your brand\u2019s values can create stronger consumer connections and lasting impact. Identify meaningful causes and partnerships that allow your brand to contribute authentically to the communities you serve.<\/span><\/p>\n PepsiCo\u2019s proprietary <\/span>pepviz<\/span><\/i> platform, showcased at NACS, demonstrated the transformative power of advanced data analytics in achieving retail success. Designed to empower convenience store partners, this innovative tool provides hyper-targeted insights into shopper behavior, enabling smarter product placement and optimized assortment strategies. As Bryan explained, <\/span>\u201cThe pepviz setup at NACS demonstrated our understanding of shopper behavior throughout the omnichannel journey.\u201d<\/span><\/i><\/p>\n The platform\u2019s goal is to <\/span>\u201cbring clarity and simplicity to the retail space, pinpoint store-level opportunities, and uncover bold, future-focused ways to connect with shoppers.\u201d<\/span><\/i> At NACS, partners explored convenience store zones like the Cold Vault, Center Aisle, and Foodservice area through an interactive display. Each selection generated <\/span>\u201crelevant insights to support key display placement and assortment recommendations, helping our customers attract shoppers and drive store visits.\u201d<\/span><\/i><\/p>\n Bryan emphasized the importance of <\/span>\u201canticipatory assortment,\u201d<\/span><\/i> explaining how modern assortment strategies must adapt to increasingly complex and interconnected consumer needs. The ultimate vision is to make every product offering feel uniquely curated for each shopper.<\/span><\/p>\n PepsiCo\u2019s efforts extend far beyond NACS. In partnership with a national convenience store chain, PepsiCo utilized its Store DNA (sDNA) solution to identify <\/span>\u201cwho the shopper is and what they are buying both inside and outside of the store.\u201d<\/span><\/i> This analysis uncovered four distinct shopper clusters, enabling a customized planogram strategy tailored to their needs. The results were clear: <\/span>\u201cClustered stores are growing compared to those that are not clustered, delivering positive results in sales, profit, and market share,\u201d<\/span><\/i> said Bryan.<\/span><\/p>\n For leaders in CPG: <\/b>Data-driven insights are no longer optional\u2014they\u2019re critical to staying competitive. Leverage analytics tools to anticipate consumer needs and refine your strategies. Just as importantly, share these insights with your retail partners to amplify the impact. Whether through advanced platforms like pepviz or simpler methods like surveys, staying ahead in today\u2019s market requires a deep understanding of your audience.<\/span><\/p>\n From Doritos XXTRA Flamin\u2019 Hot to Pepsi Wild Cherry & Cream, PepsiCo\u2019s latest product lines highlight their dedication to bold flavor innovation and cultural relevance. As Cara explains, <\/span>\u201cGen Z, the most diverse generation, is becoming a key growth cohort for food and beverage.\u201d<\/span><\/i> Leveraging pepviz data, PepsiCo discovered that Gen Z values brands that align with their beliefs and connect authentically throughout the shopper journey. This diverse generation gravitates toward \u201cbold flavors, unique textures, and nostalgic products,\u201d says Cara.<\/span><\/p>\n This year, Mountain Dew marked its 75th anniversary, setting the stage for a <\/span>\u201cnew visual identity launching next summer.\u201d<\/span><\/i> Cara shared that the refreshed branding will embody <\/span>\u201cthe brand\u2019s adventurous spirit and good times with friends.\u201d<\/span><\/i> This strategic move ensures Mountain Dew remains relevant and appealing to the ever-critical Gen Z audience.<\/span><\/p>\n For CPG leaders:<\/b> Stay closely aligned with your audience\u2019s evolving preferences. Consider which of your brands could benefit from a refresh or better connect with cultural moments to engage the next generation of shoppers.<\/span><\/p>\n PepsiCo\u2019s NACS showcase is a rallying cry for CPG leaders to rethink how they engage with people, the planet, and their partners. The days of relying solely on great recipes and marketing are long gone. While those elements remain foundational, the sophistication and depth required to meet today\u2019s challenges demand more. PepsiCo\u2019s bold approach\u2014blending sustainability, flavor innovation, data-driven decision-making, and community impact\u2014offers a roadmap for thriving in an era of constant change.<\/span><\/p>\n Reflecting on PepsiCo\u2019s presence at NACS and their marketplace initiatives, I found myself inspired\u2014not just by their actions but by the questions they provoke for the industry. Their work aligns closely with insights from my book, <\/span>The Mindful Innovator,<\/span><\/i> encouraging businesses to adopt purposeful, forward-thinking strategies. For my CPG clients heading into 2025, I\u2019ll pose three critical questions:<\/span><\/p>\n Cara Keating summed it up perfectly: <\/span>\u201cOur focus is on continuing to be a consumer-centric organization by winning new shoppers and driving loyalty.\u201d<\/span><\/i> PepsiCo\u2019s NACS presence wasn\u2019t just a moment; it marked the beginning of a movement. With exciting innovations, limited-time offers (LTOs), and fresh product pairings on the horizon, as Cara teased, <\/span>\u201cStay tuned for more.<\/span><\/i><\/p>\n By Top Retail Expert: Matt Mueller\u00a0<\/p>\n Amplify Your Brand\u2019s Voice<\/b><\/b><\/p>\n<\/div>\n1. Flavor Innovation is Table Stakes<\/b><\/h4>\n
2. Positive Impact to the Planet<\/b><\/h4>\n
<\/b>3. Positive Impact Through Community Engagement<\/b><\/h4>\n4. Data for Competitive Edge and Customized Experience<\/b><\/h4>\n
5. Connecting to Cultures & Rising Generations<\/b><\/h4>\n
A Blueprint for Bold Innovation<\/b><\/h3>\n
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